Amanda's Take Five for Wednesday

Personal Finance

No-frills=no fun?; Scandinavia on a shoestring; Matrimoney; What's a good income?; Workplace flexibility - the new black

29th Aug 12, 2:04pm by Amanda Morrall

1) No frills retirement

I'll be the first to admit that there's a lot we can do without when it comes to lifestyle choices. Do I need a pair of nude coloured heels (as is the style these days)? No. Would I like a pair? Sure but I won't go there. I know the difference between my wants and needs and how to restrain myself in the shops. Primarily, by staying away from them.

When it comes to my retirement, I would like to have some choices as I'm sure most people would. Choice does not necessarily equal luxury goods and fripperies I would argue. Shoes are one thing, but having no money to visit kids or grand kids living in different cities is another thing.

Today, on the Good Morning show, I discussed some recent work in this area by Massey University's new Center for Personal Finance Education. If you would like to see, in practical terms, what the difference is between a 'no frills' type of retirement' and the dollars attached to that, the data is now available on the Workplace Savings website or alternately Massey's Fin-Ed Centre. . I charted a few items in an earlier story here.

2) Shoestring budgets and beer

On a recent trip to Bali, (sorry to keep writing about it, in spirit I'm still there), I felt like an overnight millionaire. It wasn't just the exchange rate (NZ$1 = 7600 Indonesian Rupiahs), but the overall cost of living. I understand it's gone up a fair bit in recent years because Aussies and Kiwis are flocking there in droves but US$40 can still buy you a night at a beautiful little villa with a private swimming pool. For NZ$4 you'll be in Nasi Goreng heaven. The Aussie thought he'd died and gone to heaven because he could buy a 750ml Bintang (the local beer) for about $5 at the pub.

In this frugaltraveler.blog, a globe trotting bargain hunter trying to do Scandinavia on the cheap found no such joy with beer prices. However, with some creativity he found he could manage to get by on US$125 a day, which I guess isn't bad for what's billed as one of the most expensive European destinations. Still, much rather go back to Bali.

3) What's a good income?

Just as beauty is in the eye of the beholder, so too is the definition of what is a good income. This blog from Auckland accountants boutiquefinancial.co.nz muses about the issue and talk of $250K being the new $100K. I like this line:

Even Comedians are joking about $100,000 being astro-money in Otago but poverty line for Aucklanders.

As I said in No.1, there's a lot we can do without. It's knowing the difference between wants and needs and also deciding what we really want - out of life, that will help answer the question around income.

4) Flatscreens and marital disharmony

One of the advantages of being single is you don't have to get spousal approval for purchases or anything else for that matter. I guess that's both good and bad, as sometimes it's useful having a sounding board. Sorted's online editor Tom Hartmann muffles his financial angst when the wife surprises him one day with a new flatscreen. And here I was thinking all blokes drooled over big ass televisions.

5) Flexibility

Flexibility is the new black when it comes to terms of employment. This is especially the case at that stage in life when family demands ramp up; looking after young one or oldies, or sickies. A long-time interest.co.nz reader, herself a working mother of five, set out to solve this problem. She came up with a website that matches would be employers and would be employees looking for the perfect flexi pairing.

It's such a damn good idea, that I'm posting her website Flexiwork here. Good luck Elley. You're an inspiration to all us working mothers.

The site is specifically designed for people for whom the 9-to-5 regular day job just doesn't cut it. The main point of difference with other well-known job sites is that both candidates and advertisers enter their specific timeslot & location requirements (as many per day as required). Our search algo-rythms then help find the right people for the right jobs (including provision for job sharing options etc). The service is completely free for job seekers and posting ads is free too.

More vintage '80s music from the hair days...

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7 Comments

by Weka | 29th Aug 12, 3:06pm 1346209610

It's important saving for retirement, but I've only recently come to accept that it is ok to spend on the here and now - providing you don't go mad. I used to save every single dollar and had become more than a little obsessive and quite frankly rather bloody miserable :-) I have now learnt you can let go now and then and still keep on track for the retirement plan. The kids and I are saving for a fantastic family holiday together next year and we are all contributing, selling off stuff we no longer use and keeping track of the rising tally. They are still learning the lesson that you have to work for these things and will value the holiday even more because of their contribution, so retirement is waiting while I live a little now...

by Elley | 29th Aug 12, 3:46pm 1346211977

Thanks so much Amanda, I really appreciate the support :) Just noticed your link is broken: it's www.flexiwork.co.nz (you've got a /4 at the end for some reason).

I'll be soooo jumping up and down with excitement if FlexiWork contributes in some people finding the right balance.

by Interested2 | 29th Aug 12, 3:58pm 1346212718

Amanda I can't get to the Flexiwork site and it is not coming up on google ... I would really like to have a look because I think it is an awesome idea .. can you help with that?

The hurdle for this idea is of course altering employer's attitudes towards the traditional 40 hour 9 - 5.30 working week and of 'presentism'. (although there are certain occupations or industries where that cannot be avoided ... e.g. fishermen)

When I get my next HR role, if it is in an industry that would be condusive to this, I will give it a try.

I would be interested to know what her fees to employers are too (as many employers cannot afford agency fees these days)

I might also want to talk to Elley about another under-represented group of applicants who, but for the sake of educating employers, might also find a voice.

I wish her well ... Employers in this market are able to demand exact critera for job applicants ... I don't think this is healthy because good people work better when challenged, and / or may not be available to work conventional hours but will still deliver ... there is some education required. (read: hard attitudes to crack)

by Elley | 29th Aug 12, 4:11pm 1346213463

Hi Interested2, as per my post above, the link in Amanda's post is broken. It should be www.flexiwork.co.nz :)

Fees: I hope Amanda won't mind if I copy this from our FAQ: "Being a member is completely free, with no strings attached. Job seekers are not charged any fee whatsoever. Advertisers can post as many jobs as they wish, for as long as they wish, and relist them as required, for free. Advertisers are only charged a $5 "contact fee" if they choose to either accept another member's job application or send a job offer to another member. This fee is deducted from their FlexiWork account and is generally insignificant in comparison with the cost of the work to be carried out.

Unlike some job sites and printed publications, we do not charge advertisers to post an ad. Unlike other job sites, we do not charge an ongoing fee based on someone's salary or quote after the initial contact that we make possible has taken place. Once you have found a suitable staff or supplier, you are free to keep using them again as required without any involvement, financial or otherwise, from FlexiWork."

Fully agree with the fees charged by agencies etc. From what I know they range at around 6-12% of someone's salary for a year (or even 2). To me, that is out of proportion to the service rendered. I also don't like the other model used where advertisers pay to post an ad without any guarantee that they will actually find someone (and usually the ad is only valid for a limited time before they have to pay again). So I like my model better (of course I'd say that!).

Many thanks for your kind comments also. You are most welcome to contact me at christelle@irontech.co.nz (there's a link to our website at the bottom right of the FlexiWork pages).

by Amanda Morrall | 29th Aug 12, 4:21pm 1346214067

My apologies. It's fixed now in the story.

Cheers,

by Justice | 29th Aug 12, 7:58pm 1346227116

No 1:

Simple solution and sooooooo blimin obvious! Stop allowing people who OWN second properties( many who have NEVER paid Provisional Tax in their entire lives due to the structure they create to AVOID paying it) to actually draw a pension. They made THEIR choice! Let them eat cake! Pensions are for the "needy" ..........NOT the greedy!

by me | 30th Aug 12, 9:51am 1346277082

Good one Justice, you know how to kill any incentive for someone to undertake some sacrifices now to make provision for their retirement to supplement their super later in life. Aternative would be to spend it all year by year so you would 'qualify' at 65.